STUDENTS

CONFIDENTIAL

"IF WINTER COMES

3011

180

HKB

020/14

SHANGHAI

27 June 1989

THE PEKING MASSACRE SEEN FROM SHANGHAI

HER MAJESTY'S CONSUL-GENERAL AT SHANGHAI TO

HER MAJESTY'S AMBASSADOR AT PEKING

SUMMARY

1.

Peking was the centre of events but there were significant Shanghai angles, from the dismissal of the editor of the "World Economic Herald" to the appointment of Shanghai's Party Secretary Jiang Zemin to replace Zhao Ziyang.

2.

Shanghai avoided martial law. Mayor Zhu Rongji proved that not all Chinese politicians are as inept as Premier Li Peng.

3.

Too early to quantify the economic damage: but questions need asking about the distance centres of international business like Shanghai may wish to put between themselves and the central Government.

A tribute to Hu Yaobang and prophetic words from a young Chinese poet.

4.

CONFIDENTIAL

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